The Effects of Liberalization Policies on Economic Development in Developing Countries

Abstract

Globalisation wave was started from developed countries, for this aim the releasing policies implemented by developing countries. The releasing economic policies are generally named as economic freedom and recommended to developing countries. The purpose of this study is to reveal the effects of the releasing policies which are the recommended solutions to developing countries, on development. For this goal, the effects of fiscal freedom index, monetary freedom index and trade freedom index on human development index is analyzed with panel data method. Countries are chosen from South east Asian countries and Latin American countries. In the study 2002-2013 period was available to eliminate the effects of 1998 Asian crisis. The result of this study is, fiscal freedom, monetary freedom and government spending has no cointegtration with human development but trade freedom has a negative directional cointegtration with human development.